Inside the Star

$15.9M winning bid for railway in Lac-Megantic disaster

The winning bid for the Montreal, Maine and Atlantic Railways that went bankrupt after a fiery oil train derailment in Lac-Mégantic, Que., amounted to nearly $15.9 million, says the bankruptcy trustee.

PORTLAND, ME.—The winning bid for the Montreal, Maine and Atlantic Railways that went bankrupt after a deadly oil train derailment in Lac-Mégantic, Que., amounted to nearly $15.9 million, says the bankruptcy trustee.

Robert Keach filed documents Wednesday outlining details a day before the winning bid goes before a U.S. bankruptcy judge in Maine and a Superior Court judge in Quebec.

Winning bidder Railroad Acquisitions LLC, a subsidiary of Fortress Investment Group, also served as the “stalking horse” bidder, setting a minimum bid for Maine-based railway. Eastern Maine Railway and Springfield Terminal Railway bid on the Maine track. Another company bid for a smaller portion of track.

Proceeds from the company’s sale will be used to repay creditors and victims, supplementing $25 million in insurance payouts available following the disaster that killed 47 people.